Sherwin-Williams miss earns forecast, cuts outlook

NEW YORK (MarketWatch) -- Sherwin-Williams
SHW, -0.90%
reported third-quarter earnings of $151.6 million, or $1.07 a share, up from $132.9 million, or 92 cents a share in the same period a year ago, but fell short of the average analyst estimate compiled by Thomson First Call of $1.10 a share. Gross profit as a percent of sales fell to 42.5% from 44.3% due to a continued rapid increase in raw material costs. Revenue rose to $1.98 billion from last year's $1.68 billion vs. analyst forecasts of $1.96 billion. The paints maker expects fourth-quarter earnings to decline to 41 to 49 cents a share from 57 cents last year, missing analyst projections of 54 cents share. The company also reduced its 2005 sales outlook to mid-teens percentage growth from mid-to-high teens growth and its earnings estimate to $3.15 to $3.23 a share from prior forecasts of $3.20 to $3.30 a share. The stock closed Monday up $1.20 at $44.83.

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